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ELS issuance-H1 tally

ELS issuance surges 19 pct on-year in first half: data

SEOUL, July 21 (Yonhap) -- South Korea's issuance of equity-linked securities (ELS) jumped 19 percent from a year earlier in the first six months of the year, data showed Monday.

The total value of ELS products issued in the January-June period came to 21.7 trillion won (US$15.6 billion), compared to 18.3 trillion won issued over the same period last year, according to the data from the Korea Securities Depository (KSD).

Equity-linked securities are hybrid debt securities whose return is determined by the performance of the underlying equity.

By type, ELS products that track the KOSPI 200 as underlying assets accounted for the largest share with 8.9 trillion won.

Those tracking the S&P500 came next at 8 trillion won, followed by ELS products linked to the Euro Stoxx 50 and the Nikkei 225 at 7.2 trillion won and 2.7 trillion won, respectively.

Redemption in the first half fell 43.5 percent on-year to 19.7 trillion won.

As of the end of June, the outstanding amount of ELS products amounted to 53.6 trillion won, up 5.5 percent from a year earlier, the data showed.

The Financial Services Commission has proposed a revision to the law on ELS issuance that seeks to make it difficult for financial firms to sell ELS products.

The revision aims to prevent improper sales of ELS products, after investors of ELS products linked to the Hang Seng China Enterprises Index suffered huge losses last year.

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